Renault Chairman, Execs of Nissan, Mitsubishi Agree to Cement Ties

Tokyo, Feb. 15 (Jiji Press)--Jean-Dominique Senard, visiting chairman of French auto giant Renault SA, and leaders of its two Japanese partners--Nissan Motor Co. and Mitsubishi Motors Corp.--reconfirmed their intentions to strengthen the three-way alliance at a series of talks held on Friday. They shared the view that it is important to prevent power from being concentrated into any single executive, in the wake of the arrest and indictment of former alliance boss, Carlos Ghosn, in Japan for alleged financial misconduct. Senard became Renault chairman late last month to replace Ghosn, following his resignation as chairman and chief executive officer at the French firm. Senard arrived in Japan on Thursday and held talks within the day with Nissan President and CEO Hiroto Saikawa and Mitsubishi CEO Osamu Masuko. He met with Saikawa and Masuko again on Friday. Senard is aiming to improve the Renault-Nissan ties, which have soured over the Ghosn scandal. Ghosn has been indicted for allegedly underreporting his pay from Nissan in violation of Japan's financial instruments and exchange act and on suspicion of aggravated breach of trust for transferring his personal financial losses to Nissan, an act against the companies law. Ghosn was dismissed as chairman of Nissan and Mitsubishi, respectively, shortly after his first arrest by Tokyo public prosecutors on Nov. 19 last year. After Friday's talks, Saikawa told reporters in Tokyo that he and Senard "had good discussions on improving (the three-way alliance's operations) while maintaining a relationship of trust." They also agreed to avoid the concentration of power into any single executive, according to Saikawa. Masuko said that he discussed with the Renault chairman ways to effectively manage the alliance. Senard said his mission is to strengthen the alliance, according to Masuko. Senard also exchanged opinions with leaders of major companies of the Mitsubishi group, including trader Mitsubishi Corp. and Mitsubishi Heavy Industries Ltd. . Nissan and Renault face difficult issues, including a possible overhaul of their capital alliance structure and the nomination of a new Nissan chairman. This time, however, Saikawa and Senard are believed to have put priority on increasing trust between them while postponing discussions on these sensitive issues, informed sources said. Regarding Senard's visit, Japanese industry minister Hiroshige Seko told a press conference Friday that he hopes for smooth cooperation between Nissan and Renault. Meanwhile, a special committee of outside experts for discussing governance reforms at Nissan held its third meeting on Friday. Members agreed that Nissan's alliance with Renault is important. The committee decided to review Nissan's governance system on the assumption that its alliance with Renault will remain unchanged. The committee will hold its next meeting on March 17 and compile its proposal at the end of March. END